Tagged: Investments

The Great Resignation: Rolling over a Retirement Plan Account (i.e., 401k, 403b, etc.)

Have you heard of the Covid-19 phenomenon referred to as the Great Resignation? Statisticians tell us that the U.S. workforce had over forty million resignations in 2021 (approx. 3.95 million per month!). Yes, it represents a new annual record. Experts in the know say that trend will continue through 2022. If you are in this group, what is your intent with your retirement plan account sitting in your soon-to-be former employer’s plan? Are you happy with your current investments? Just remember, rolling over a retirement plan account (i.e., 401k, 403b, etc.) after changing jobs is commonplace. But avoid ‘cashing it out.’ Before we met, a flight attendant client of mine who is single told me that she had all intentions to cash out and just buy a Waikiki apartment, leasehold! And she was only 55 years old. With no income rolling in, how will the maintenance fee get paid? And of course, you want to eat, right? On top of that, it’s seven years before her social security kicks in. With no other income to speak of, she could not afford to wait beyond 62 and earn an additional 8% annually. And with money as cheap as it was (as of 3/24/22 interest rates going up), why tie it all up? With no pension, she needs a fund that can eventually create a guaranteed retirement income. IMHO, she needs to continue to accumulate funds; not cash out prematurely. Every client is different, but it sure helps to have a guaranteed income plan in retirement.

Disclosures:

The Wheeler Group LLC is a registered investment advisor with offices in Honolulu, Hawaii. Past performance is no guarantee of future returns. Investing involves risk and loss of principal capital. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by The Wheeler Group LLC unless a client service agreement is in place.